September 25, 2018
Hawk Incentives Infographic: Reward-Based Promotions Outperform Discount-Based Promotions
Hawk Incentives recently published an infographic detailing the differences between reward- and discount-based promotions. Among the major highlights was a summary of why companies choose reward-based promotions, such as rebates, instead of discounts offered at checkout. Many marketers surveyed leaned toward rewards because they are more effective in increasing revenue, driving purchase intent, propelling loyalty programs, boosting customer engagement and more.
The infographic findings were culled from a research study completed in early 2018 by leading market intelligence firm, Aberdeen Group, which interviewed more than 200 businesses regarding their promotional strategies.
Top takeaways include:
- Giving rewards can make marketing dollars work harder and drive purchase intent.
- Companies that use rewards-based promotions can experience higher annual revenue increases year-over-year.
- Reward-based promotions are used to foster customer engagement.
- Marketers that choose reward-based promotions want a premium brand image versus one known for frequent discounting.